"Bizarre" Condemnation Case Resolved — Family Can Seek Payment for Avalon Beach Property

New Jersey Supreme Court Permits Filing of Inverse Condemnation in 40 Year Old Dune “Taking” Case

 The New Jersey Supreme Court decided earlier this week that Edward and Nancy Klumpp could pursue an inverse condemnation action decades after the Borough of Avalon constructed a dune on their property following a 1962 Nor’easter which destroyed their beachfront home.  The Court found that while New Jersey law ordinarily requires that an inverse condemnation action be filed within six years from the event that effectuated a property taking, the facts of this case required a more equitable resolution. 

 The Court focused on how the Klumpps were never provided notice that their property was being taken, continued to pay taxes on the property since the 1960s, were denied access to the property despite Avalon’s insistence that no taking had occurred, and that the property remained listed as a private property.  The Court also found that Avalon should not be permitted to first claim that the Klumpps owned the property, only to later argue that Avalon owned the property to raise a statute of limitation and adverse possession defenses.  The Court remanded to the trial court so the Klummps could pursue their inverse claim and to determine just compensation.  Under New Jersey law, the owner of property which is taken via eminent domain ordinarily is compensated for that property as of the date of the taking.  While the taking here likely occurred in the 1960s, when property values were much lower, New Jersey law also provides that an owner receive interest on any unpaid sums from the date of the taking until the date of payment, in an effort to make the compensation “just”.  In addition, owners who are successful in inverse condemnation cases are entitled to be reimbursed by the government for the fees and expenses they incur, including reasonable attorneys’ fees and costs.

This case was previously discussed on our New Jersey Condemnation Law Blog here (/) and here.

 A copy of the Supreme Court’s opinion in Klumpp v. Avalon can be found here.

News articles on the case include the following:

MaryAnn Spoto’s article in the Star-Ledger:  “N.J. Top Court rules couple can seek payment for taken Avalon beach property”

David Porter’s Associated Press Story:  “N.J. court: Couple can get repaid for beach lot taken in ’60s”

The author wishes to acknowledge the assistance of Cory K. Kestner, Esq., of McKirdy & Riskin, PA, in the preparation of this article.